Fire Insurance


Top 5 causes of Fires:

 Electrical short circuits.

 Cooking & Heating mishaps.


 Careless smoking.

 Flammable Liquids.

From the above list, we can understand that a Fire mishap can happen anywhere at any time and to anyone. It is extremely necessary that we protect ourselves and our property from the hazards of fire’s destructive force.

Fire insurance indemnifies the insured against the financial loss which the latter may suffer due to destruction of or damage to property or goods, caused by fire, during a specified period.

It can cover all moveable and immoveable properties on land of the insured.

Who can take a Fire Insurance policy?

Any person or organization with insurable interest in the property such as:



 Pawnee/Pawn broker

 Official receiver or assignee in insolvency proceedings

 Traders in stocks

 A person in lawful possession

There are broadly 3 types of Fire Insurance:

  • Standard Fire & Special Perils:

This basically covers your property against basic perils such as:




 Aircraft damage

 Riot, strike, malicious damage

 Storm, typhoon, hurricane, tornado, flood and inundation

 Impact damage

 Subsidence and landslide

 Bursting and overflowing of water tanks, apparatus and pipes

 Missile testing operations

 Leakage from automatic sprinkler installation

 Bush fire

  1. Consequential Loss:

This policy complements the above one by covering the loss of gross profit as a result of a slowdown in business operations due to the damage caused by the fire.

  1. Industrial All Risks:

Specifically designed for industrial units, this policy covers all the dangers and losses from material damage to business interruptions.

A word of Caution from Wealth Navigator:

Please keep adequate number of Fire Extinguishers at your property / properties so as to minimize the damage caused by fire. Although the Fire Insurance covers you, damage, for example, todata and information, can be sometimes very difficult to reverse.